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DPIIT Recommends Removal of Angel Tax; Finance Ministry to Make Final Decision

In a significant move, the Commerce Ministry has recommended abolishing the contentious “angel tax,” signaling potential relief for startups in the upcoming budget. The current regime imposes a 30% tax on investments made by external investors in startups.

The recommendation, driven by the Piyush Goyal-led ministry, awaits the final decision from the Finance Ministry, as confirmed by Rajesh Kumar Singh, Secretary of DPIIT, in a media briefing on Thursday.

The angel tax has long been criticized by many in the Indian startup ecosystem as a draconian measure stifling entrepreneurship and innovation. Despite ongoing concerns raised by angel investors, venture capitalists, and activists over the past decade, the government maintained the tax as a means to curb money laundering.

Introduced in 2012 under the UPA-led government, the angel tax aimed to address unaccounted money through capital raised from resident investors in closely held companies, charging a 30% tax on such investments.

“The recommendation to remove the angel tax is a welcome move. We, the angel investor community, are hopeful for complete relief from it. Our hopes now rest with the Finance Ministry,” said a prolific angel investor with over 60 startup investments.

Last September, a government notification exempted DPIIT-registered startups from the 30% taxation, claiming to provide relief to over 80,000 startups. However, many DPIIT-approved startups and their angel investors have received Income Tax notices over fair market valuation and investor details in the past six months.

The DPIIT’s recommendation is a positive sign for the ecosystem. Past court and tribunal rulings have also deemed the angel tax unnecessary. The final decision now lies with the Finance Ministry, and the startup and investor communities eagerly await the outcome.

UNICEF Praises Kerala’s Little KITEs as a Leading EdTech Initiative

UNICEF has praised Kerala’s Little KITE programme as a global model for education, emphasizing its impact on 2,174 high schools and its role in promoting future-ready skills and gender equality in STEM. The study, “Empowering Adolescents with Future-Ready Skills – The Inspiring Story of Little KITEs,” was released on Saturday.

The report was received by Rani George IAS, Principal Secretary of the General Education Department, from Pramila Manoharan, UNICEF India’s educational specialist, in the presence of Chief Minister Pinarayi Vijayan and General Education Minister V Sivankutty.

Key Highlights of the Study:

Impact and Reach: Implemented by Kerala Infrastructure and Technology for Education (KITE), the Little KITEs programme is the largest ICT network of students in India. It has significantly impacted high schools across Kerala, fostering creativity, problem-solving skills, and bridging the gender gap in STEM education by encouraging girls’ participation.

Economic Benefits: The programme’s use of Free and Open-Source Software (FOSS) has saved Kerala Rs 3000 crore, demonstrating the economic benefits of opting for non-proprietary software. The report also noted that Finland has expressed interest in replicating the Little KITEs model.

Global and National Alignment: The initiative aligns with global and national efforts to develop future-ready skills in line with the United Nations Global Framework. The study offered 10 data-driven recommendations, emphasizing the scalability and adaptability of Kerala’s KITE-led EdTech model.

Community Involvement and Expansion: The UNICEF study recommended expanding the Little KITEs programme to all high schools and higher secondary levels in Kerala. It also suggested involving local bodies and communities to increase investment in public education.

Public School Attraction: The success of Little KITEs has attracted students from private schools to enroll in public schools, further validating the programme’s effectiveness and appeal.

Endorsements and Future Plans:

Dr. Akila Radhakrishnan, Social Policy Specialist with UNICEF India, emphasized that the Little KITEs programme is a unique FOSS-based EdTech intervention. “UNICEF is committed to sharing the success stories of Little KITEs with other states and countries,” she said.

K Anvar Sadath, CEO of KITE, expressed the organization’s eagerness to partner with UNICEF and other entities to expand the reach of Little KITE to new regions. “We are also looking for support from the FOSS community to develop AI capabilities,” Sadath added.

The study’s publication on the UNICEF website underscores the global significance of Kerala’s innovative approach to digital education, marking a milestone in the state’s journey towards becoming a knowledge society and economy.

As the study concludes, “Little KITEs is a well-sown seed in the fertile ground of EdTech in Kerala. It has grown rapidly, promoting a wide range of students across the public school system to explore creativity and problem-solving, connecting school to life in innovative ways, and architecting safe digital futures.”

This recognition by UNICEF not only highlights the success of Kerala’s digital education initiatives but also sets a benchmark for other regions to follow, reaffirming Kerala’s position as a leader in educational innovation.

Revised Date for NEET PG 2024 Announced: Exam to Take Place on August 11 in Two Shifts

New Delhi: The National Board of Examinations in Medical Sciences (NBEMS) has rescheduled the NEET PG 2024 exam to August 11, with the test set to be conducted in two shifts. Originally planned for June 23, the examination was abruptly canceled on June 22 due to concerns raised by authorities.

In response to recent allegations of irregularities in competitive examinations, NBEMS postponed the June 23 exam as a precautionary measure. Annually, around 2 lakh MBBS graduates compete in the NEET PG examination for approximately 52,000 postgraduate seats nationwide.

Also read: NEET trending on X, 67 candidates Secured AIR 1

The Ministry canceled the exam to ensure the robustness of the examination process and to eliminate any vulnerabilities, according to the board. Dr. Abhijat Sheth, Chief of NBE, emphasized the Ministry’s commitment to preventing miscreants from exploiting NEET PG applicants, particularly in light of recent cancellations of NTA exams that have alarmed Indian students.

Haryana Government Reshuffles Bureaucracy, Appoints Anurag Rastogi as New Home Secretary

In a significant administrative reshuffle, the Haryana government has transferred 12 IAS officers and appointed Anurag Rastogi, a 1990-batch officer, as the new home secretary. According to a government order, Rastogi will now serve as the additional chief secretary for the home, jails, criminal investigation, and administration of justice departments, while continuing to oversee the finance and planning departments.

Rastogi succeeds Chief Secretary TVSN Prasad as the home secretary. This reshuffle in the top bureaucracy, anticipated since the Lok Sabha polls, comes just months before the upcoming assembly elections later this year.

In a similar major reshuffle over a week ago, the Haryana government transferred 23 Indian Police Service (IPS) and 27 Haryana Police Service officers.

Other notable transfers include Anurag Agarwal, the chief electoral officer and additional chief secretary of the elections department, who has been posted as additional chief secretary in the irrigation and water resources department. Phool Chand Meena, managing director of Dakshin Haryana Bijli Vitran Nigam, will take on the role of Hisar division commissioner in addition to his current duties.

Geeta Bharti, the Hisar division commissioner and managing director of the Haryana Scheduled Castes Finance and Development Corporation, will also serve as the commissioner of Ambala division. Ankur Gupta, additional chief secretary in the agriculture and farmers welfare department, has been reassigned as additional chief secretary in the cooperation department and the personnel department (appointments).

Anand Mohan Sharan, additional chief secretary in the environment, forests, and wildlife department, will now hold the same position in the labour department alongside his existing responsibilities. Raja Sekhar Vundru, previously the cooperation department’s additional chief secretary, will now serve as the additional chief secretary in the agriculture and farmers welfare department as well as the animal husbandry and dairying department.

Vineet Garg, additional chief secretary in the higher education department, has been transferred to the school education department. Rajiv Rattan, director general of higher education and secretary of the higher education department, will take on the role of commissioner of the Karnal division in addition to his current duties.

Agritech Startup Arya.ag Secures $29 Million at $325 Million Valuation

Arya.ag, an agritech startup based in Noida, has successfully raised approximately Rs 242.36 crore ($29.2 million) from its existing investors. This marks the company’s first funding round since January 2022.

The board of Arya.ag approved a special resolution to issue 53,695 Compulsorily Convertible Preference Shares (CCPS) at Rs 45,137 each, raising the $29.2 million, as per regulatory filings accessed from the Registrar of Companies (RoC).

The company received Rs 134.46 crore from existing investors, Asia Impact and Quona Capital, through Quona Blue Earth and Accion Quona. According to estimates by TheKredible, Arya.ag is valued at approximately Rs 2,700 crore ($325 million) post-allotment. The valuation may change with future fundraisings.

To date, Arya.ag has raised around $110 million, including $60 million in a Series C round led by Asia Impact SA, Lightrock, and Quona Capital in 2022. Lightrock, formerly Aspada Investment, was the largest external shareholder, holding 17.89% as of the Series C round, with Lightrock Venture holding 12.84%.

Arya.ag operates a grain commerce platform connecting agricultural producers (sellers) with buyers, offering additional services such as warehousing and loans through third-party lenders.

The company reported a profit for the fiscal year ending March 2023, with a 49.48% year-on-year increase in gross scale to Rs 290 crore and an elevenfold profit increase to Rs 7.58 crore. For FY24, Arya.ag reported net revenue of Rs 360 crore and a net profit of Rs 17 crore, although the audited annual report for the last fiscal year is yet to be filed.

The Future of Digital Payments: Will CBDC Replace UPI?

The Unified Payments Interface (UPI) platform has experienced significant growth, with the number of transactions rising by 49% year-on-year (y-o-y) to 13.9 billion in June, according to the latest data from the National Payments Corporation of India (NPCI). Despite a slight dip from May’s 14 billion transactions, attributed to the shorter number of days in June, the platform continues to show robust performance.

In terms of transaction value, June saw a 36% y-o-y increase, reaching Rs 20.1 trillion. This is slightly lower than May’s Rs 20.4 trillion, which had seen a 37% y-o-y rise. NPCI data also revealed that the average daily transaction count in June was 463 million, with an average daily transaction amount of Rs 66,903 crore.

In the evolving landscape of digital finance, Central Bank Digital Currency (CBDC) and Unified Payments Interface (UPI) are at the forefront of transforming how we handle transactions. Both systems have revolutionized digital payments, but could CBDC soon eclipse UPI as the preferred choice? Here’s a closer look at these systems, their functionalities, and the potential shift towards CBDC. Siddharth Mala, Correspondent, ObserveNow interacted with Sandeep Indurkar, CEO, Resilient Payments Private Limited (A BharatPe Group Company) to gain more insights.

Understanding CBDC and UPI

CBDC functions like digital cash and is backed by the government, combining the stability of traditional currency with the convenience of digital transactions. It can be used for online purchases and business transactions, effectively making your country’s money available in a digital format.

UPI connects various banks to facilitate direct money transfers without needing cash. It is user-friendly, and secure, and allows instant transfers from one account to another.

While commenting on the Impact of India’s CBDC on the competitive scenario of digital payments Sandeep stated “CBDC and UPI will complement each other, enhancing the overall digital payment ecosystem. For CBDC to succeed, interoperability with UPI is essential, while ensuring anonymity similar to cash transactions is crucial. Just as we don’t require KYC for holding cash, additional details like PAN should only be asked when transactions exceed certain limits.”

The Potential of CBDC

CBDC, representing digital money issued by the central bank, and UPI, facilitating instant bank transfers, both offer significant benefits. However, the digital payment landscape is evolving. Unlike UPI, which is largely confined to India, CBDC has the potential for global adoption, simplifying cross-border transactions. The central bank’s backing can provide CBDC with greater stability and trust compared to UPI, along with stronger security measures addressing privacy and fraud concerns more effectively.

QR and offline payments are equally pivotal aspects of the Unified Payments Interface (UPI) ecosystem, significantly enhancing the digital payment landscape in India. QR code-based payments allow users to make transactions swiftly by scanning a QR code with their UPI-enabled app, automatically populating payment details for easy confirmation. This method is not only secure, as it avoids sharing sensitive information like bank details, but also cost-effective, eliminating the need for expensive POS terminals. This ease of use and widespread acceptance has made QR code payments popular across various economic sectors, from small street vendors to large retail stores.

Emphasizing Technical and regulatory challenges for offline CBDC transactions, Indurkar said “Offline timeout scenarios must be meticulously managed to prevent double spending, unlike situations where at least one party (either payer or payee) is connected online, where double spending can be easily tracked. Transaction thresholds should be implemented by analyzing the risk of cash hoarding and setting maximum limits for offline and online holdings.”

Offline payments via UPI address the digital divide, enabling financial transactions even in areas with unreliable internet connectivity. Users can leverage USSD codes, token-based systems, or SMS commands to conduct transactions without internet access. This inclusivity ensures that digital payments are accessible to all, promoting financial inclusion and convenience. By streamlining payment processes and supporting small businesses, both QR and offline payment methods contribute to the broader goal of a cashless economy and economic growth, ensuring that digital financial services are within reach of every Indian citizen.

In the near future, CBDC might become the digital counterpart to traditional currency, while UPI continues to facilitate instant bank transfers. With its wider reach and government backing, CBDC has the potential to streamline and dominate the global digital payments landscape. As we embrace a digital era where money is as mobile as we are, transactions will become smoother and faster than ever. The future of finance is arriving at your digital doorstep, and CBDC might just be the key to unlocking it.

Intel Appoints Roshni Das to Vice President of Global Marketing

Intel Corporation has promoted Roshni Das to the position of Vice President of Global Marketing, marking a significant advancement in her 12-year tenure with the company. Das, who announced her promotion on LinkedIn, will now lead the Global Marketing Innovation function while continuing to oversee marketing efforts in the India region.

Prior to this role, Das served as Regional Chief Marketing Officer for Asia Pacific and Japan at Intel. She originally joined the company in 2012 as Head of Integrated Media and Consumer Marketing for South Asia.

With a career spanning over 25 years, including notable stints at Standard Chartered Bank and Lowe Lintas, Das brings extensive experience in brand management, product marketing, and customer-alliance management to her new global leadership role at Intel.

Government Issues Guidelines for Funding Testing Facilities and Infrastructure under National Green Hydrogen Mission

The Ministry of New & Renewable Energy (MNRE) has released comprehensive Scheme Guidelines aimed at financing testing facilities, infrastructure, and institutional support under the National Green Hydrogen Mission.

Launched on July 4, 2024, these guidelines are designed to address gaps in existing testing capabilities for components, technologies, and processes across the Green Hydrogen value chain. The initiative includes provisions for establishing new facilities and upgrading current ones to ensure operational safety and reliability.

With a total budget of Rs. 200 crores allocated until the fiscal year 2025-26, the scheme aims to bolster the development of robust quality and performance testing facilities crucial for the production and trade of Green Hydrogen (GH2). The National Institute of Solar Energy (NISE) will oversee the implementation of the scheme, focusing on fostering sustainable and secure GH2 practices.

The National Green Hydrogen Mission, launched on January 4, 2023, with an overall budget of Rs. 19,744 crores up to FY 2029-30, seeks to bolster India’s self-reliance in clean energy. By facilitating significant decarbonization and reducing reliance on fossil fuel imports, the mission positions India as a leader in Green Hydrogen technology and market advancements, contributing to global efforts towards a cleaner energy future.

Jamia Hamdard University and IFTDM Launch New Digital Marketing Course

Jamia Hamdard University has partnered with Garage Productions Private Limited to launch a new digital marketing course under the Institute for Film Training and Digital Marketing (IFTDM). The six-month certificate program is set to commence with the 2024 batch, and applications will be available soon on iftdm.com.

The course curriculum is tailored to industry standards, offering students mentorship from industry professionals, access to the latest technologies and platforms, hands-on training, and internship opportunities for real-world experience.

At the MoU signing ceremony, Prof (Dr) M. Afshar Alam, Vice Chancellor of Jamia Hamdard, stated, “Digital marketing is now the cornerstone of modern business strategies. Through IFTDM, we are equipping our students with the highly demanded skills in the corporate world.”

The ceremony was also attended by Dr M A Sikandar, Registrar; Prof S Raisuddin, Director of IQAC; Prof (Dr) Syeedun Nisa, Director of CTD, and Vinod Kumar, Secretary to the VC. Garage Productions was represented by Saurabh Gupta, Director.

Upon completing the course, students will be prepared for roles such as digital marketing managers, social media strategists, content marketing specialists, SEO or SEM experts, e-commerce marketing directors, and data analytics professionals. Saurabh Gupta remarked, “We are not just teaching digital marketing; we are cultivating digital visionaries. Our commitment extends beyond providing quality education – we aim to shape the future of digital marketing through our students.”

Sankha Bhowmick Joins WhiteOak Capital Management as CHRO

WhiteOak Capital Management has appointed Sankha Bhowmick as its new Chief Human Resources Officer. With 27 years of experience in the HR sector, Bhowmick’s expertise is expected to strengthen the company’s talent management strategies.

Prior to joining WhiteOak Capital, Bhowmick held a key position at Goldman Sachs, where he focused on expanding the engineering footprint in India. His career also includes significant roles at Mahindra & Mahindra Financial Services, Bristlecone, Barista Coffee, BCCL (The Times Group), and Star Television (NewsCorp).

Prashant Khemka, Founder of WhiteOak Capital, expressed enthusiasm about the new appointment, stating, “We are delighted to welcome Sankha as our Chief Human Resources Officer. He brings a wealth of experience in managing large and diverse talent pools. His expertise will be invaluable in reinforcing our performance-first culture as we continue to scale our business across the group.”

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